Metminco raises $30m

Minerals explorer
Metminco
has completed a $30 million capital raising to fund the merger with exploration minnow
Takoradi
and to accelerate project development of deposits in southern Peru.

The company told the Australian Securities Exchange on Monday it had successfully conducted a placement of 150 million shares at 20¢.

In a statement, Metmino chairman John Fillmore said the funds will be used to start a drilling program at its Los Calatos copper/molybdenum deposit in Peru, which contains highly prospective tenements.

Mr Fillmore said the placement significantly broadens Metminco’s shareholder base and “introduces a number of strong ‘cornerstone’ investors to the company".

Some of the funds will also be used to complete a $50 million cash-and-scrip deal with Rodney Hudspeth’s junior explorer, Takoradi, that was announced on September 30. The transaction involves Takoradi merging its South American mining interests, including those in the Los Calatos project, into Metminco.

The company said funds will also be used for its Mollacas and Vallecillo projects and for working capital.

BGF Equities acted as lead manager on the raising.

The placement is subject to shareholder approval at the company’s annual general meeting in November.